Acceptable risk of incorrect acceptance is directly affected by acceptable audit risk.

Question

Quizplus · Accepted Answer

Acceptable risk of incorrect acceptance refers to the risk that an auditor incorrectly accepts financial statements as materially correct. This level of risk is directly related to the acceptable audit risk, which refers to the level of risk that an auditor is willing to accept that the financial statements contain material misstatements after the audit has been conducted. Therefore, acceptable audit risk affects the level of acceptable risk of incorrect acceptance.

Acceptable Risk of Incorrect Acceptance Is Directly Affected by Acceptable